Willie Nelson Tries To Fight The Irs Blues

WASHINGTON — Country singer Willie Nelson has run afoul of the Internal Revenue Service, which is accusing him of civil tax fraud and is seeking more than $2.2 million in unpaid taxes and penalties.

From 1975 through 1978, Nelson significantly understated his taxable income by underreporting earnings and using improper deductions, the IRS has charged.

According to an IRS ``notice of deficiency`` sent last October to Nelson and wife Connie, ``all or part`` of the alleged underpayment of taxes for 1975 through 1977 ``is due to fraud, which is attributable to Willie H. Nelson.``

As a consequence, the IRS assessed a 50 percent penalty, a fine of $730,597.

In addition, the IRS assessed a penalty of more than $23,000 for alleged violations in 1978, charging that part of the underpayment of tax for that year ``is due to negligence or intentional disregard`` of federal tax rules.

Meanwhile, the IRS says, Nelson owes more than $1.5 million in taxes for the four years.

Details of the tax case are contained in papers Nelson filed in U.S. Tax Court in Washington last month to contest the notice of deficiency. In those papers, Nelson denied the fraud claim. He has requested a trial in Dallas.